This strategy is a core Canadian fixed-income portfolio that aims to maximize total return through interest income and capital appreciation. The portfolio is primarily invested in investment-grade fixed-income securities issued by Canadian governments and corporations. The return objective is to outperform the FTSE Canada Universe Bond Index as well as peers throughout economic and market cycles.
100% FTSE Canada Universe Bond Index
Philosophy and process
The portfolio is actively managed with a medium- to long-term horizon, using a top-down multi-strategy approach that leverages diversified sources of added value.
The strategy is based on anticipating interest rate movements from analysis of macroeconomic trends. Duration management and curve-positioning are therefore the main sources of added value, followed closely by sector allocation and issuer selection. From time to time, the manager may add securities denominated in foreign currencies, real return bonds or other securities to enhance returns and or reduce volatility.
Risk is managed as per the following guidelines:
Duration positioning: +/-1-year vs index
Sector positioning: +/-25% vs index
Active yield curve positioning
Credit analysis of corporate issuers by leveraging the expertise and prudent approach of the iAGAM corporate credit team
ESG risk and opportunities analysis
Maintaining an average portfolio credit quality of AA
Maximum of 5% of the portfolio may be invested in high-yield bonds and senior loans
Currency risk is partially or totally hedged, at the discretion of the portfolio manager.
Why invest in these strategies?
Predominantly Canadian fixed-income exposure with a proven track record of outperformance through market cycles managed by an experienced management team with extensive industry expertise.
Access to a well-diversified portfolio that offers daily liquidity.